West Allis leaders review mayor's preliminary 2026 budget; public meeting set Oct. 30

West Allis officials reviewed the mayor's preliminary 2026 budget and fiscal outlook at a council meeting that included staff presentations of new revenues, proposed utility rate changes and a multiyear capital plan.

The council's discussion focused on balancing a structural budget gap while preserving core services. Mayor (name not specified) said local governments remain overly dependent on property taxes and urged residents to press state lawmakers, calling "the way the state is funding local governments is a broken and unsustainable system." Finance Director Jason Kasmir and City Administrator Aaron Hern joined staff in explaining revenue assumptions and next steps.

City staff told the council that several one-time and recurring revenue developments helped improve the city's fiscal position for 2026. Those included a newly identified Medicaid reimbursement program covering ambulance-related costs (staff estimated roughly $1.45 million in reimbursements for 2023'24), and a restructured Convention and Visitors Bureau arrangement that staff said could return roughly $420,000 to the general fund. Staff noted some state aid categories remain variable and could change before final adoption.

Officials also reviewed the limits that constrain the city budget: the statutory levy limit (growth tied to new construction) and the state's expenditure-restraint calculation (noted by staff as 3.1% this year; the proposed budget was presented at 3.0%). Staff said personnel changes in the recommended budget add approximately three full-time-equivalent positions (including 1.25 grant-funded housing positions) and that the city is proposing a 2% general employee wage increase and a negotiated increase for firefighters.

Utility rates were flagged for modest increases. Staff said the sanitary utility would see an 11.6% increase in the projected year (equivalent to roughly 2.6% per year when averaged across recent years), the stormwater utility a larger-sounding one-year increase that averages out to about 2.3% annually over several years, and a 5% increase for solid waste due to rising tipping fees and vehicle costs. Staff advised that the water utility is regulated by the Wisconsin Public Service Commission and had an earlier rate action that is not changing as part of this budget.

On capital projects, the council reviewed a $31.7 million capital improvement program. Highlights listed by staff included approximately $11 million toward public works and utility infrastructure, $1.2 million for parks and market/rec improvements (including farmers market upgrades), $1.5 million for police (including a dispatch radio upgrade), and an estimated $17.5 million in street work. Staff noted a National Avenue reconstruction tied to a state project where the city expects to cover roughly 20% of the cost for local work and utilities; that segment will create an atypically high local cost for that corridor in the coming year.

Staff outlined public outreach and the formal schedule: a public information center at Talia's on Oct. 30, a public hearing to review the proposed budget in the coming weeks, and council consideration of final action on Nov. 11. Council members discussed additional budget review sessions in January and February to examine department reductions and program-level detail.

Clarifying details captured in the meeting included staff's estimate of $1,450,000 in Medicaid-related reimbursements covering ambulance runs (staff described the payments as retroactive to 2023), a $420,000 reallocation tied to the Convention and Visitors Bureau restructuring, and a $31.7 million capital program. Staff said the proposed local tax rate projection in their slides would raise the average city tax bill by about $44 for a $200,000 house (city portion approximately $17.12 of that increase), but cautioned those figures did not include school or other taxing jurisdictions.

The council did not adopt the mayor's initial resolution at the meeting; members earlier indicated they would hold or table formal adoption to allow further review and public input.

The city will host the Oct. 30 public information session and then take public comment before returning the proposal for formal council action in November.